Dougie sold the following stocks in year 5:Date PurchasedStockCostDate SoldProceeds fromSale54.000$10,000V6/YR312/31/YR5$3.000$12,000$14,0004/21/YR412/31/YRS$12,000$12,50012/31/YRS $13,800What is the overall net capital gain/loss of the above transactions and what is the tax treatment of the gain/loss?Y7/2/YRS12/31/YRS11/30/YRSMultiple Cholce$5,300 LTCG taxed at preferential rates$5,300 STCG taxed at ordinary rates$5,000 LTCG taxed at preferential rates and $30O STCG taxed at ordinary rates$5,000 STCG taxed at ordinary rates and $300 LTCG taxed at preferential rates$4,700 LTCG taxed at preferential rates

Capital Gains are taxed at different rate depending on their holding period. If the asset is sold…

Sele 00 S10,000 $12.000 $12,500 12/31/YRS 12/31/YRS 00 00 s of the above transacions and what is the tax treatment of the gainiloss? 12/31/YRS 1231/YRS $13,800 at preferential rates at ordinary rates at preferental rates and $300 STCG taved at ordinary rates at ordinary rates and $300 LTCG taxed at preferential rates

Sele 00 S10,000 $12.000 $12,500 12/31/YRS 12/31/YRS 00 00 s of the above transacions and what is the tax treatment of the gainiloss? 12/31/YRS 1231/YRS $13,800 at preferential rates at ordinary rates at preferental rates and $300 STCG taved at ordinary rates at ordinary rates and $300 LTCG taxed at preferential rates

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter3: Computing The Tax

Section: Chapter Questions

Problem 23CE

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On January 1, 20x5, Paz acquired 80% of Shey outstanding ordinary shares for P950,000. Paz uses the cost method to record the investment account. The statement of financial position of Paz and Shey on December 31, 20x1 are as follows: Paz Shey Cash 2,500,000 1,000,000 Accounts receivables 500,000 250,000 Inventory 800,000 200,000 Investment in Shey 950,000 - Land 2,000,000 - Building - net 1,200,000 - Equipment - net 600,000 500,000 Total 8,550,000 1,950,000 Current liabilities 750,000 500,000 Ordinary shares 3,000,000 650,000 Share premium 500,000 100,000 Retained earnings 4,300,000 700,000 Total 8,550,000 1,950,000 On January 1, 20x5, the assets and liabilities at book value of Shey approximates its fair value except for the inventory and equipment which is undervalued by P50,000 and P20,000, respectively. The equipment has a remaining useful life of 5…
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